Automatic Data Processing’s (ADP) “Sector Perform” Rating Reiterated at Royal Bank Of Canada

Royal Bank Of Canada restated their sector perform rating on shares of Automatic Data Processing (NASDAQ:ADP) in a report published on Thursday,Benzinga reports. The firm currently has a $290.00 price objective on the business services provider’s stock.

A number of other research analysts have also recently commented on ADP. Citigroup boosted their price target on Automatic Data Processing from $230.00 to $287.00 and gave the stock a “neutral” rating in a report on Thursday, July 30th. Cantor Fitzgerald upped their price target on Automatic Data Processing from $295.00 to $310.00 and gave the stock an “overweight” rating in a research note on Monday, August 3rd. TD Cowen lifted their price objective on shares of Automatic Data Processing from $216.00 to $223.00 and gave the company a “hold” rating in a research report on Monday, July 6th. Jefferies Financial Group lifted their price objective on shares of Automatic Data Processing from $225.00 to $250.00 and gave the company an “underperform” rating in a research report on Wednesday. Finally, Stifel Nicolaus boosted their target price on shares of Automatic Data Processing from $285.00 to $305.00 and gave the stock a “hold” rating in a report on Thursday. Three analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $283.27.

Automatic Data Processing Price Performance

Shares of Automatic Data Processing stock opened at $293.84 on Thursday. The stock’s 50-day simple moving average is $277.25 and its 200-day simple moving average is $240.83. Automatic Data Processing has a 52 week low of $188.16 and a 52 week high of $309.40. The company has a market capitalization of $116.43 billion, a price-to-earnings ratio of 26.05, a PEG ratio of 2.65 and a beta of 0.83. The company has a quick ratio of 1.05, a current ratio of 1.03 and a debt-to-equity ratio of 0.98.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings data on Wednesday, October 28th. The business services provider reported $2.82 earnings per share for the quarter, topping analysts’ consensus estimates of $2.77 by $0.05. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. The firm had revenue of $5.49 billion during the quarter, compared to analyst estimates of $5.48 billion. During the same quarter in the prior year, the company posted $2.49 earnings per share. The business’s quarterly revenue was up 6.1% compared to the same quarter last year. As a group, analysts expect that Automatic Data Processing will post 12.36 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Friday, September 11th were issued a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a yield of 2.3%. The ex-dividend date was Friday, September 11th. Automatic Data Processing’s dividend payout ratio (DPR) is currently 60.28%.

Insider Transactions at Automatic Data Processing

In other Automatic Data Processing news, VP Brian Michaud sold 120 shares of Automatic Data Processing stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $279.70, for a total value of $33,564.00. Following the sale, the vice president owned 18,442 shares of the company’s stock, valued at $5,158,227.40. The trade was a 0.65% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Joseph Desilva sold 631 shares of the company’s stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $282.87, for a total value of $178,490.97. Following the sale, the vice president directly owned 18,824 shares in the company, valued at $5,324,744.88. This trade represents a 3.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 31,359 shares of company stock worth $8,809,422. 0.15% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Pathway Financial Advisers LLC purchased a new stake in shares of Automatic Data Processing during the 3rd quarter valued at approximately $39,000. Chicago Partners Investment Group LLC lifted its holdings in Automatic Data Processing by 15.1% during the 3rd quarter. Chicago Partners Investment Group LLC now owns 9,480 shares of the business services provider’s stock worth $2,883,000 after buying an additional 1,243 shares in the last quarter. Covestor Ltd lifted its holdings in Automatic Data Processing by 16.5% during the 3rd quarter. Covestor Ltd now owns 538 shares of the business services provider’s stock worth $139,000 after buying an additional 76 shares in the last quarter. Richardson Financial Services Inc. boosted its position in Automatic Data Processing by 82.7% in the 3rd quarter. Richardson Financial Services Inc. now owns 709 shares of the business services provider’s stock valued at $183,000 after buying an additional 321 shares during the period. Finally, Ascent Group LLC boosted its position in Automatic Data Processing by 19.9% in the 3rd quarter. Ascent Group LLC now owns 19,301 shares of the business services provider’s stock valued at $4,981,000 after buying an additional 3,200 shares during the period. 80.03% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Automatic Data Processing

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Raised fiscal 2027 outlook: ADP now forecasts 10%–12% growth in adjusted earnings per share and raised its outlook for client-funds interest revenue to $1.59 billion–$1.61 billion. The improved guidance is the clearest near-term catalyst for the stock. ADP forecasts fiscal 2027 adjusted EPS growth
• Positive Sentiment: Quarterly results exceeded expectations: ADP reported earnings of $2.82 per share versus the $2.77 consensus estimate, while revenue of $5.49 billion modestly topped forecasts and increased 6.1% year over year. Management also highlighted AI momentum during the earnings call. ADP fiscal 2027 first-quarter results
• Positive Sentiment: Some analysts see additional upside: Guggenheim reaffirmed a Buy rating with a $340 price target, while Stifel raised its target to $305. Jefferies also lifted its target, although it retained an Underperform rating. Guggenheim ADP rating
• Neutral Sentiment: Expansion in small-business payroll: ADP is broadening its reach among small-business customers, a move that could support long-term client and revenue growth but may require additional investment. ADP small-business payroll expansion
• Negative Sentiment: Valuation and analyst caution: Citi, Morgan Stanley, and RBC maintain neutral or equivalent ratings with targets around $288–$295, while Jefferies remains bearish. A Seeking Alpha analysis also argues that investors should not chase the rally despite ADP’s attractive dividend-growth record. ADP dividend growth and valuation analysis

About Automatic Data Processing

Automatic Data Processing, Inc (NASDAQ: ADP) is a global provider of human capital management and business outsourcing solutions. The company helps employers manage payroll, human resources, workforce administration, benefits, tax compliance, time and attendance, talent management, and related employment processes.

ADP offers cloud-based platforms and services designed for businesses of various sizes, from small enterprises to large organizations. Its portfolio includes payroll processing, human resources management, employee benefits administration, retirement services, workforce management, data analytics, and professional employer organization services through ADP TotalSource.

Founded in 1949, ADP serves businesses in the United States and international markets.